sales in the Americas soar by 57% in the first quarter

As Bloomberg reports the possibility of L’Occitane leaving the Hong Kong stock exchange, where it has been listed for 14 years, the cosmetic group published its first-quarter results for fiscal year 2023/24, reaching 502 million euros in revenue, a 24.5% increase at constant exchange rates. The growth continues to be led by the American skincare brand Sol de Janeiro, acquired at the end of 2021, as well as the flagship brand L’Occitane en Provence, which is benefitting from a mild recovery in the Chinese market.

“We are aware of persistent macroeconomic uncertainties, such as signs of a slower-than-expected recovery in China, ongoing inflation in key markets, and headwinds in exchange rates. Nevertheless, we remain cautiously optimistic about our prospects for fiscal year 2024, supported by increased marketing investments in key markets and distribution channels for our flagship brand and the continued development of our new brands,” explained André Hoffmann, CEO of L’Occitane, emphasizing the desire to expand Sol de Janeiro and Grown Alchemist, the Australian skincare brand acquired in March 2022, in the Asia-Pacific region and in travel retail.

In the first quarter of 2023/24, the brand L’Occitane en Provence achieved sales of 290 million euros, a 4.4% increase at constant exchange rates. Sol de Janeiro’s sales reached 113 million euros, marking a growth of 171%. Elemis recorded a turnover of 48 million euros, representing a remarkable increase of 23.6%. Finally, the group’s other brands, LimeLife, Melvita, Erborian, L’Occitane au Brésil, and Grown Alchemist, generated a revenue of 50 million euros, showing a 16.2% rise.

Thanks to the strong performance of Sol de Janeiro, sales in the Americas generated 202.5 million euros, a significant growth of 57.5%. The Asia-Pacific region reached sales of 180 million euros, with a growth of 11.2%. Sales in the Europe, Middle East, and Africa (EMEA) region reached 120 million euros, experiencing a growth of 6.4%.

During the first quarter, online sales surged by 24.4% to 149 million euros, largely driven by the sales of Sol de Janeiro. Retail sales reached 160 million euros, an increase of 3.5%, while sales in multi-brand stores totaled 193 million euros, with an impressive growth of 50.6%.

Present in 90 countries, the L’Occitane Group boasts a portfolio of eight brands and a network of 3,000 stores, 1,300 of which are directly operated.